construction period carrying charges

(1) Construction period carrying charges (A) In general In the case of any amount paid or incurred for construction period carrying charges— (i) no deduction shall be allowed with respect to such amount, and (ii) the basis of the property with respect to which such charges are allocable shall be increased by such amount. (B) Construction period carrying charges defined For purposes of this paragraph, the term “construction period carrying charges” means all— (i) interest paid or accrued on indebtedness incurred or continued to acquire, construct, or carry property, (ii) property taxes, and (iii) similar carrying charges, to the extent such interest, taxes, or charges are attributable to the construction period for such property and would be allowable as a deduction in determining taxable income under this chapter for the taxable year in which paid or incurred. (C) Construction period The term “construction period” has the meaning given the term production period under section 263A(f)(4)(B).


26 USC § 312(n)(1)

Scoping language

For purposes of this paragraph
Is this correct? or